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Tax Installment Agreement
"I need a Tax Installment Agreement for my manufacturing company in Manila, with a total tax liability of PHP 5 million to be paid over 24 monthly installments starting March 2025, including provisions for collateral security using company equipment."
1. Parties: Identifies the taxpayer and the Bureau of Internal Revenue (BIR) as parties to the agreement
2. Background: States the outstanding tax liability, reference to tax assessment, and the taxpayer's request for installment payment
3. Definitions: Defines key terms used in the agreement including 'Tax Liability', 'Installment Period', 'Due Dates', etc.
4. Tax Liability Amount: Specifies the total amount of tax liability including any penalties and interest as of the agreement date
5. Payment Terms: Details the installment amount, payment frequency, and duration of the installment plan
6. Mode of Payment: Specifies acceptable payment methods and where payments should be made
7. Default Provisions: Outlines consequences of missing payments or breaching the agreement
8. Representations and Warranties: Taxpayer's declarations regarding financial status and ability to pay
9. Governing Law: Confirms the agreement is governed by Philippine law and BIR regulations
10. Execution: Signature blocks for both parties and notarization requirements
1. Collateral Security: Required when the tax liability exceeds certain thresholds or when deemed necessary by the BIR
2. Guarantor Provisions: Included when a third-party guarantor is required to secure the payment obligations
3. Compromise Settlement: Included when part of the tax liability is subject to compromise settlement
4. Electronic Payment Terms: Required when electronic payment methods are to be used
5. Amendment Provisions: Included for agreements with longer payment terms to allow for potential modifications
6. Force Majeure: Optional clause for protection against unforeseen circumstances affecting payment ability
1. Schedule A - Payment Schedule: Detailed breakdown of installment amounts and due dates
2. Schedule B - Tax Assessment Details: Breakdown of the tax liability by type of tax, year, and including penalties and interest
3. Schedule C - Supporting Documents: List of required documents submitted by the taxpayer
4. Appendix 1 - Financial Statement: Current financial statement of the taxpayer showing ability to pay
5. Appendix 2 - Authorization Documents: Corporate resolutions or authorization documents if taxpayer is a corporation
6. Appendix 3 - Collateral Documents: Details of any collateral provided, if applicable
Authors
Financial Services
Manufacturing
Retail
Real Estate
Construction
Professional Services
Technology
Healthcare
Education
Mining
Agriculture
Transportation
Hospitality
Energy
Telecommunications
Finance
Accounting
Legal
Tax
Treasury
Compliance
Corporate Secretariat
Internal Audit
Risk Management
Executive Management
Chief Financial Officer
Tax Manager
Finance Director
Accountant
Tax Consultant
Financial Controller
Corporate Treasurer
Tax Compliance Officer
Legal Counsel
Corporate Secretary
Finance Manager
Accounts Payable Manager
Tax Attorney
Business Owner
Managing Director
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